Earlier
1. we are calculating at Factor Cost,,
now in Market Price
GDP at Market Price = GDP at Factor cost + Indirect Taxes -Indirect subsidies
2, other is change in base year of the calculation, which changes once in 5 years routinely
eg now trading activities are done by manufacturing sector.. (now it is also included in the manufacturing sector).. hence manufacturing share soared by decent number
hence these kind of changes happen while changing the base year
at the end
it not only Economy stupid, how we calculate also matters.
Hence in this Union budget one can see lot of subsidies being reduced and indirect taxes being raised and their collection normalised..
Lets wait and see.
1. we are calculating at Factor Cost,,
now in Market Price
GDP at Market Price = GDP at Factor cost + Indirect Taxes -Indirect subsidies
2, other is change in base year of the calculation, which changes once in 5 years routinely
eg now trading activities are done by manufacturing sector.. (now it is also included in the manufacturing sector).. hence manufacturing share soared by decent number
hence these kind of changes happen while changing the base year
at the end
it not only Economy stupid, how we calculate also matters.
Hence in this Union budget one can see lot of subsidies being reduced and indirect taxes being raised and their collection normalised..
Lets wait and see.
